on your screen, michael murphy and his service and his ultimate sacrifice for our country. jon: to his survivors, we can only say thank you for his service. jenna: and now his ship will set sail. jon: "america live" starts right now. megyn: fox news alert, from the campaign trail, it is ramping up a new line of attack on governor romney. calling him dishonest and untruthful and a flat-out liar. welcome, everybody, i am megyn kelly. one website suggesting that the president and his top advisors came up with an idea and a strategy session the next morning. that idea would be to paint mr. romney is a flat-out liar. governor romney, of course, is experiencing polling momentum,

and he is trying to build upon that with a foreign policy speech that he gave at the virginia military institute just an hour ago. president obama come in the meantime is in california on a campaign tour. the last 72 hours come we have seen a growing tide of political ads and remarks from campaign officials and surrogates with one central theme. mitt romney is a liar. here is a sample. >> are you saying that governor romney lied or was dishonest? >> yes, i think he was dishonest am absolutely. >> many people are pointing out what a liar mitt romney is. if he was talking are speaking last night, he was lying. >> you know, i think that we expected an aggressive debater to show up last night. we did not expect an aggressively dishonest debater to show it. and that is what we got with mitt romney. >> many people are saying that what they saw was that governor romney that they have known all

along and has been the problem in the past and they haven't seen that person. that he finally emerged during the debate. >> so you think that he lied through his teeth when he said he was going to cut taxes for wealthy people? >> he is the etch-a-sketch guy who has transformed himself and quite frankly, we always have to wonder which mitt romney is going to show up. if you just lay out lie after lie after lie about your own plan, as well as what the president has been talking about, of course you can look good. megyn: joining me now is chris stirewalt, host of "power play." i wanted to get back to january of 2009 when president obama in a common about immigration. joe wilson, shouted out, you lie on the floor of the house.

watch this. >> there there are those that claim that our reform efforts would ensure illegal immigrants. this, too, is very false. the reform -- the reforms i am proposing would not apply to those who are here legally. megyn: the president and his supporters back then were outraged that joe wilson chose to resort to name-calling and calling him a liar. because they disagreed with what he was saying about his policies. the leader came out and said we have to get to the point where we can have a conversation about big and important issues that matter to the american people without vitriol or name-calling. without the assumption of the worst and other people's motives. what happened to that? >> well, the election happened to that and the president finds himself where he did not want to be right now, which is a six month long attack on mitt

romney's character. basically it said that the president and his team, spending a lot of tens of millions of dollars in these battleground states each month, to say that mitt romney is a bad person. not that his policies are bad, necessarily, but always that mitt romney is a bad person coming one who hurts people and is a tax cheat and they have been pounding away at mitt romney all along on this. they did not expect to say and search into this stretch of the campaign. it should not be surprising that the course of a have opted to take is to escalate and ramp up the character attacks, the personal attacks. now they are just going with he is a liar. once upon a time, american politics, it would've been a very big deal and a strong accusation and it would have changed the way that things work, but now it is just sort of one within. megyn: isn't really? we have frank to show us these

advertisements that come out from either side -- when the republicans assault obama and his party, they don't like it. but now they are doing it to mitt romney. >> they have been doing it all along. it came with some risk. they knew that there were risks. we saw it in calling favorability numbers for the president. you would think that they would've done would have done this by now, kill mitt romney's character. but it survived well enough with a few dings along the way. the danger for the president is to have to work to fill the need to launch this kind of an amazing personal attack, to say that the former governor of massachusetts, the guy who was a bishop in his church and who is the nominee of a major presidential party is a flat-out

liar is a big deal, and i think there probably will be some backlash to the president on that. megyn: the reporting this morning on politico is that the president was po. and he had a long conversation with himself about what happened, he decided to go after romney is a dishonest person. there is a question about whether that is going to work. forget whether the poll showed. 170 plus million people sat and watched the debate. are they really going to buy that in exchange after exchange in which romney had the last word, let president obama say nothing, and president obama conceded on a lot of romney's points -- that they are going to walk away saying that what really happened is that romney lied to the entire country in 90

minutes. and now we are going to set the country straight on these lies. >> the president is crabby with him. the president is in l.a., smooching with those folks, had an off night, it was a bad night, and i promise that i will come back and i will go back to taking a hatchet to mitt romney and i am back on the attack. don't worry, democrats. don't worry about this. i will go back to what we have been doing for five or six months, which is relentlessly attacking mitt romney personally and relentlessly attacking his character and his promise to democrats. i am assuming that there is some addressing of him talking about the way that he felt when he realized how poorly the debate had gone. he needs to show democrats that he can get angry and that he is tough and he is going to come turnaround. megyn: he's going to do it with a smile, they say. after watching himself, it shows that he was not smiling very often. the final question, why does it

have to be lying? if the president sees a difference in romney last week versus romney six months prior, why can't it be, this is where romney is today and this is the promise he is making today. why does it have to be that he is now vying? >> because that would not be a character attack. look, the focus for the president is to make this election, a referendum on mitt romney's character as far as being the president of the united states. they say that he is unworthy. he is a bad person and shouldn't be there. megyn: they were saying at the dnc that he is a good guy. not from the underlings, but from the top layer people, they were saying that mitt romney is a good guy. >> they have a funny way of showing it. these ads in these attacks we saw after the president stumbled last week, it indicated that they are not talking about politics. they are not saying that the president has different visions

and that mitt romney might be misguided or make the wrong assumptions, in fact, they are saying that he lied and that he made things up. that is about about mitt romney's character in the effort to blow up his character, not talk about his policies. megyn: we will talk about a little bit more in the program. we will talk to the democratic side to see what they think. chris stirewalt, thank you, sir. the romney team tried to take advantage of some newfound energy in that debate. ann romney, part of the gop's super saturday grassroots effort. she made a surprise appearance at an orlando call center. she joined volunteers working on the phones in the campaign's push to reach out to 2 million voters this weekend. while there, ann romney met one campaign worker who made more than 100 30,000 calls on governor romney's behalf. there are two remaining presidential debates, and one vice presidential debate.

the two remaining presidential debates happen next tuesday, october 16, then the following monday, october 22. this thursday we go to kentucky for the vp debate. the following week, where do we go? they are traveling all over. it is in long island. right across the way. we will be looking forward to that. the vice presidential debate, they go against each other again sometime. fox news alert. israel stepping up its military defense just 48 hours after a mystery drone penetrated airspace. planes shot down aircraft over the weekend. israel is blaming the lebanese militant group hezbollah. and ruling out a missile base in her florida with that country.

we leadbetter has the latest. reporter: we are very concerned about this new drone. it shows a whole new level of sophistication over the horizon. that drone had to fly at hundreds of miles to get all the way here. the israeli air force intercepted the drone and shot down. they had to scramble a couple of writer just in order to do that, and they later said it was a reconnaissance drone. hezbollah has used explosives in the past. you can see where the drone flew in, over the gaza strip and to the north, the important part is where that patriot missile battle is in the city of haifa. over the land border or by the sea. lebanon television, which is

based by hezbollah and supported by hezbollah, said that the iranian group is behind it. but they are saying it shows the weaknesses of the israeli air defensive and also, israel, as we know, they are ruling out that air defense system in case there is any more drones coming its way. back to you. megyn: thank you. disturbing comments today from the former head of security at the american consulate in benghazi. that may vindicate governor romney's reaction to the attack and the loss of life of ambassador christopher stevens. also, we will show you how an obscure supreme court case could change the rules on everything from garage sales to craigslist. and president obama has been telling the country that the map does not add up for governor romney's plan for adding more jobs. but a top economics professor, upon whom the president has been relying for his attacks, says

that the president is not signing him correctly. he says that he has crunched the numbers and the math works out just fine. lou dobbs with us next. >> lets understand that for the one thing they saw was clear. mitt romney's plan is to go back to a failed economic theory of tax cuts for the very rich fromn it despite the fact that he did not that's how i met marilyn... giada... really good. yes! [ jack ] ...and alicia. ♪ this girl is on fire [ male announcer ] use any citi card to get the benefits of private pass. more concerts, more events, more experiences. [ jack ] hey, who's boring now? [ male announcer ] get more access with the citi card. [ crowd cheering, mouse clicks ]

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megyn: a top economics professor at princeton is now calling out president obama. for his comments at last week's debate and his common sense then, suggesting that governor romney's economic plan does not add up. here is what the president said. >> the fact is that if you are lowering the rates that we been described, governor, than it is not possible to come up with enough deductions and loopholes that only affect high income individuals to avoid either raising the deficit or burdening

the middle class. it's math. it is arithmetic. megyn: now, this professor at princeton, upon whom the obama campaign has based its charge since then, they are citing this professor, harry rosen, to say that romney's plan is going to pinch the middle class -- he has come out and said, i have never said that and i do not believe that. joining me now is lou dobbs, host of "lou dobbs tonight" and a syndicated radio host. it's not often that you see a princeton guide defending a candidate, but he is saying that i am not saying, this will not pinch the middle class. why is that? be. lou: based on a set of assumptions, it is a result of the tax reductions and the marginal tax rate, which would be 20% from top to bottom.

megyn: romney is going to cut 20% for everyone? lou: the top 20% will go to 28. and he said, what are you talking about? they stripped away the tax policy center -- which is a left wing outfit. megyn: let's just keep on that, because this is the other thing -- the tax policy center says the middle class is going to get pinched for the president, and professor harry rosen says i did not say that and i do not believe that. you are pointing out the tax policy center is a left group? be too exactly. there is no need to call the president a liar. he and his people are calling governor romney that. that is very absurd here. what they have done is to store it what each of these candidates is advocating, it has been distorted by both sides on occasion. what they are doing right now, the obama campaign, is really beyond compare. the reality is, professor rosen

is stepping forward to defend his analysis, saying that the white house and the president and his campaign staff are utterly wrong when they suggest that lowering rates is not adequate to simulate more growth and to reach a revenue neutral solution. megyn: david axelrod was on the sunday shows saying if you lower rates, and eliminate loopholes, he says, i am not giving gifts to the rich because i'm going to get rid of a lot of popular deductions that the rich take. but david axelrod says that's not enough. even doing that is not enough to make up for all the revenue that he is going to sacrifice by lowering the rates. lou: he wants to do something very important. the national liberal media will not focus on it. he is talking about ending loopholes and shutting down these inefficiencies within our tax code. that is very important. but he's also talking about stimulating growth. and, david axelrod, who talked

about the brazenness of governor romney, which is utterly laughable, no one is more brazen than david axelrod, he is ignoring the reality, destroying what the governor has said. that is unconscionable, i think you will pay a major price for it in the pool. megyn: i want to get to this soundbite from governor romney from the debate. he seemed to be talking about the different approaches. >> that manically, there are three ways we can cut the deficit. one, of course, is to raise taxes. number two is to cut spending, number three is to grow the economy. because if more people work in a growing economy, they are paying taxes and you can get the job done that way. the president would prefer raising taxes. i understand. the problem with raising taxes is that it slows down the rate of growth. you can never quite get the job done. i want to lower spending and encourage economic growth at the same time. megyn: he is talking about broadening the tax base, because if you lower the taxes, people have more money, they spend more money, the federal government

takes in more. lou: it will is a result of the growth that it stimulates. but we have to put forward a very important caveat. this president has been in office ends 2009. he has not once performed at the tax code, has not once altered the direction of the tax, spending, and borrowing of the government. romney is talking about reversing all of that. truth is, megyn, without reducing spending and taking control of that deficit and this mountain of debt, there is no amount of taxation available to the most mystical and brilliant economists that would result in that. megyn: you have to question what that something is. they have very different visions. for the record, ronald reagan reduced taxes on the rich and revenues went up. lou: governor romney made it clear that he will work with the democrats. megyn: lou dobbs, thank you so

much. the supreme court this week takes up a case that could do away with decades of affirmative action. we will look at this long-standing law and why one property manager says it may not pass review by the justices be mad if they can make it into an academic sector of the school.

megyn: a picture-perfect launch for the first cargo mission of the international space station. >> three, two, one. we have lift off. megyn: how about that. the falcons six rocket blasting off cape canaveral. it was built by spacex, which has a $1.6 billion deal with

nasa to carry out resupply missions. it begins a three-day fight for space. it is carrying vital gear for the crew members at the space station. good for our sales become a thing of the past? it may sound nuts, but that question is being asked because of the supreme court case that raises questions about whether a company still owns the rights to products, even after you buy them. trace gallagher is live with more. reporter: is called the sale document. the supreme court has recognized the fourth 100 years. for apple and iphone scum they have rights to the first sale. but i can resell my iphone to anybody that i want to, nobody has the rights to it. well, the supreme court is taking a second look at the for sale doctrine.

he went to cornell university and he noticed that textbooks at cornell were a lot more expensive than they were in his native thailand. with the help of his family, he bought up tons of textbooks and resold them on ebay and made a very tidy profit. well, the publisher of the textbooks sued him and one in federal court. the second circuit court upheld that ruling. the ninth circuit court came in and said, well, sometimes you can resell and sometimes you can't. but the third circuit court said you can always resell your own stuff. now, it is up to the supreme court. if they decide that reselling goes to the copywriter, that means that the copywriters are going to want their child of cash. it will be a game changer, meaning it will change everything from ebay to craigslist, which has millions of items every day from overseas makers and even jewelry and family heirlooms would all be subject to that if they were

made in a different country for that second sale limit. megyn: that is unbelievable. i could have prohibited my mom from reselling my 1987 from down. for 1 dollar at a garage sale. [laughter] reporter: she should've made a pretty penny on that. megyn: that lazy, puffy sleeved number. i wish i had it today. speaking of prom parties, i learned you can grab it from down for a dollar. [laughter] coming up, an illegal alien picked up with a phony driver's license and went with a felony is released by the feds. did the "washington post" indicate that the feds give this guy a free pass?

and an nfl cheerleader is in "kelly's court" today, sarah jones. and governor romney is blasted for raising security concerns. the former head of the security detail in libya has explosive revelations that could give you credibility to mr. romney's comments. stay tuned. >> i think it is a terrible course for america to apology for our values. when our grounds are being attacked and being breached, but the first response of the united states must be outraged at the breech of the sovereignty of her nation [ fishing rod casting line, marching band playing ]

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>> americans woke up this morning with tragic news and heavy hearts. as they consider that the individuals that have served in our diplomatic corps were brutally murdered. across the world. this attack is outrageous. it is disgusting and it breaks the hearts of all of us who think that have served during our lives, the cause of freedom and justice and honor. america will not tolerate attacks against our citizens and against our embassies. we will defend, also, the constitutional rights of speech and assembly and religion. the attacks on libya and egypt underscored that the world remains a dangerous place and that american leadership is still sorely needed. in the face of this violence,

america cannot shrink from the responsibility to lead the. megyn: that was governor romney raising some questions about security in and the day after our attack on our consulate. the benghazi consulate that was involved in the killing of ambassador stevens and others. this guy in libya is speaking out. his name is lieutenant colonel andrew wood. he is saying that security in libya, in the weeks ahead of the attack, when those on the ground at the state department for more help, the state department actually cut security staffing. >> i feel like we were being asked to play the piano with two fingers. there was concern amongst the entire embassy staff. i had people come and ask me that as well. they asked -- they asked what was going to happen. i can only answer that what we

are being told is that they are working on it. but they will get us more. but i never saw that. for the environment that we had, we felt that we needed more and not less. megyn: joining me now is brad blakeman, former assistant to george w. bush. and the chairman of the dnc. gentlemen, welcome back. now we have had a bipartisan effort on top of capitol hill into exactly what the situation is there and why the ambassador and the others were not better protected. brad, how does this man's testimonial change the story? >> i think it shows that the truth eventually comes out. no matter how the white house wanted to stone unturned stone wall. it did not fit their political narrative once before a presidential election, but somehow osama bin laden is dead and al qaeda is forever vanished. it is not true. al qaeda is alive and well.

he is doing harm to american citizens, we now know that our consulate in benghazi was substandard and we received a waiver from the state department with regard to security. the laws were inferior, that construction, rebar, our ambassador was not properly protected as he should've been should have been in moving around the country with proper security. the security was very lax. this administers it has a lot to answer for. they like us to believe at first, megyn, this was all about a youtube video, when they knew that wasn't true. they perpetuated that lie in the u.n. when our u.n. ambassador said it was because of a youtube video, she knew better, and the president certainly did. the truth does come out. the cover-up is sometimes worse than the crime, but not in this instance when an ambassador is dead and three other americans as well. megyn: hindsight is 2020. he looked back with our ambassador dead and three others dead, we can see that security was not adequate in benghazi. but it is disturbing to hear

about this according to colonel wood, that not only are we going to reduce what we have in place. >> you know, there are a couple of observations that i have to make. just three weeks ago, this happened. certainly, this serviceman has the right to speak out about what he knows. but it passes as strange to me that right now, efforts being made to buy these folks and bring them to justice, it may be disinformation. i know that brad will find this shocking, this information may assist in the effort. we do not know. wait a second, brad, to rush to judgment on this, simply because it is four weeks before an election, it is contrary to everything i have ever heard

about. >> wait a minute, dick -- lying to the american people -- >> i'm sorry, when you make an announcement that you want digested by al qaeda, sometimes, when you make out publicly, the american people get the same message. let me tell you something, the proof is in the pudding. osama bin laden is in hell. most of al qaeda is in hell. five or six people they are looking for in this will be in hell soon. what you need to understand is that in two this situation, 2000 people are dead. mitt romney wants to say, the president wants to get out. that's the decision that the american people need to make. [talking over each other] megyn: we are trying to figure out what happened to our ambassador. it is a dangerous road to go down. andrea, who is saying that in response, bin laden is dead, and

so is our ambassador to libya. we have to figure out how that happened. [talking over each other] megyn: does it concern you, colonel wood, is saying that they asked if they were saved and that what was going to happen and i was told we are working on it, they would get us more, but i never saw that. >> sure, it's part of the picture. but did you really need to know this by november 6, unless this is a political issue purely. >> you don't want to know by november 6, you don't want the american people to know the truth. you guys want to ride this out. hopefully the american people will pay attention to something else. when the white house and others were either grossly incompetent or willfully lied to by the president. now it is substantiated by an american military person. but they were properly protected, even though they begged for a. >> we don't know what it was, brad. what i am saying, why scour this 30 days before an election?

[talking over each other] >> the american people deserve answers. >> oh, the american people. you republicans want to make sure this becomes an issue so that we lose focus on afghanistan, iraq, mitt romney going to london and insulting our allies there, having no foreign policy. this is about distractions. [talking over each other] >> mitt romney has acted more like a president for calling the attacks were it was. only after two weeks did it come down to the white house saying that it was so. megyn: they came out and said that colonel wood was not part of the security assessment in benghazi. that is where the attack took place. he was in tripoli. that means he was unfamiliar with the local situation in benghazi. he claims, however, that our ambassador was likely stationed in tripoli and the two of them met every day. he was only in benghazi for that one trip.

so he was familiar with the ambassador's concerns and so on and so forth. in the days and weeks, we will see this play out. the bipartisan group in the senate as a return date, asking for the information about the post date of the election. it is not necessarily all politics. thank you. >> thank you. >> thank you. megyn: well, when abigail fischer did not get into the university of texas, for her slot going to a less qualified candidate. this week, her argument as to the supreme court in a case that could end affirmative action. once and for all. up next. >> regardless of your race come you can be smart or you can be not as smart -- it doesn't matter what the color of your skin is when you have diabetes...

your doctor will say get smart about your weight. that's why there's glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. [ male announcer ] glucerna hunger smart. a smart way to help manage hunger and diabetes. megyn: there is a new and significant challenge to a affirmative action. look at case of the university

of texas, that could do with the decades-old practice of affirmative action. and the university system. the case was brought forward by a high school student in texas whose application for admission was rejected by the university. despite needing all the necessary qualifications. the case winds up in the nation's highest court, jacek this is fascinating. it was about 10 years ago that the supreme court upheld the affirmative action in the use of college admissions. it was just one factor, it can't be this many blacks and whites -- one of the many factors -- that is what this university of texas says it is doing. it is looking at race as one of many factors. they are they're going to admit the minority student because they want to stick to demographics.

>> chief justice john roberts and samuel alito -- they have held that, but what the reality is is that the previous case, the way to end racial discrimination is to end racial discrimination. it is to not consider race as a factor. it is interesting. if you go back to the history and look at brown v. board of education that allowed for this end of segregation, what was it that the lawyers were looking for? what was their aim in that case? but race not be a factor in admission. you can't deny somebody because of the color of their skin. but we never said that he should get a special preference. we had a special preference legislation over the last 45 years. when he talked to a lot of people, they think that the time for that is over and the sprinklers going to come to that exact conclusion. that is why they have taken the case out of texas, and that is to say this. we will look at the qualifications of the based on a number of factors, and we will determine and admit

those who are called by. that is good for everyone. you still have a situation where if you really want to play that race is a factor for admission, that is almost a form of insidious discrimination in and of itself be one isn't? because the students students of color are argued that for decades, even in socioeconomic status in this country, that they have not been afforded the same opportunity. but they had had difficulty pulling themselves out of a difficult situation. but they need a hand. they don't need a complete, you know, free pass, but when given the contest between themselves and a student that is caucasian, they believe that that history entitles them to a slight edge. >> you know, that history is an unfortunate part of our history when it was racial discrimination. but we are going back 50 and 60 years. i think that when you start

classifying people based on race, but that is the discrimination in and of itself. first of all, you have a multiracial society in the united states. we are the melting pot and multiracial in that sense. and how do we determine what the race of that person is. when you dice it up and slice it up, you can't can figure that out and it's not easy to do. the culture and society has changed since brown v. board of education. race is a factor is demeaning to the system. supreme court justices are minorities and they have done quite well. megyn: our own president as well be back yet from the president of the united states. megyn: people of color have achieved amazing feats in this country. the girl says that she would've gotten if it wasn't for this racial suffragette university of

texas. by the way, they did, they are the sixth spot nationally for producing undergraduate degrees for minorities. his affirmative-action potentially just gone from the college setting? it can be used anymore, potentially? >> i think so. it may be special circumstances where they might allow it. they might have a narrow opinion. but what chief justice roberts said. the way to end discrimination on race is to end racial determination across the board. the reality is there are a number of minority students, large numbers of minority students, that are well-qualified that would meet the academic criteria and i do want to go back to the statement that i said previously. if you look otherworldly live in now for the united states of america, we have leading doctors, physicians that are minorities. we have a president of the united states. the first black american president of the united states. really, one of the first black leaders of the free world. let's be realistic here.

the strikes have been tremendous. do we really need to have race as a factor or, as doctor king said, the content of the character, not the color of their skin. i think that is the reality that we live in now. that is the america today. megyn: coming up, new questions about how the feds are handling immigration cases after an illegal person was picked up and let go by the feds. are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today. try this... bayer? this isn't just a headache. trust me, this is new bayer migraine. [ male announcer ] it's the power of aspirin plus more in a triple action formula to relieve your tough migraines. new bayer migraine formula.

megyn: a former "washington post" reporter who came out as an illegal immigrant is making headlines today. police arrested josé antonio vargas with a fraudulent driver's license. we are getting reports that they had let him go because immigrations customs enforcement, i.c.e., but that failed to take action. trace gallagher has more with

this. reporter: josé antonio vargas was speaking to a college in minneapolis outside of the city. not only, was he the one that came out and said he was an illegal alien, but he is also trying to get people to stop using the phrase illegal immigrants. police say that he was pulled over for wearing headphones near the airport while driving. police say that his washington state drivers license was expired and showed signs of being caught on. phony. so they took him into state custody and he was then contacted by the state police, i.c.e., they had no intention of assuming custody, so he was let go. we just contacted i.c.e., and they sent us a message saying, i.c.e. is focused on smart, effective immigration enforcement that prioritizes the removal of public safety threat. recent border crossers and

egregious immigration law violators. there is no where in there saying that they have any intent to pick up josé antonio vargas. he goes to court next week, and there is no indication that i.c.e. will be there as well. there is still no word from washington state as to whether or not that drivers license actually is phony or is this the actually gave him one some point in time. megyn: wait a minute, so we mentioned something about another felony. is that not right? i want to make sure that we get that right. reporter: you mean the drivers license? megyn: so there is only one fraudulent driver's license that is the potential felony? reporter: that is correct. wearing headphones and a potential fraudulent license. megyn: okay, thank you. an nfl cheerleader turned teacher is accused of sleeping with a 16-year-old student. sarah jones went on tv and said that the truth will set her free

on national tv. her case comes up on "kelly's court" today. and obama's attacks the governor romney is a liar. a fair and balanced debate is coming up next [ male announcer ] when these come together, and these come together, one thing you can depend on is that these will come together. delicious and wholesome. some combinations were just meant to be. tomato soup from campbell's. it's amazing what soup can do.

i"i'm not in favor of a a$5 trillion tax cut. that's not my plan." mitchell: "the nonpartisan tax policy center concluded that mitt romney's tax plan would cost $4.8 trillion over 10 years." vo: why won't romney level with us about his tax plan, which gives the wealthy huge new tax breaks?

because according to experts, he'd have to raise taxes on the middle class - or increase the deficit to pay for it. if we can't trust him here... how could we ever trust him here? megyn: a fox news alert. new fallout after governor mitt romney criticizes the president in a major foreign policy speech today. delivering a tough speech on america's role on the global stage. i'm megyn kelly. even before this speech today at thev military institute the obama campaign had been hammering governor romney as an unqualified mess on foreign policy. but from the minute he took the stage he attempted to tackle a variety of issues and made clear his vision on the global foreign policy. >> our embassies why been

attacked, our flag have been burned. these mobs hoisted the black banner of islamic extremism over the embassies on 9/11. as the dust settles and the murdered are buried americans have asked how this happened, how the threats we face have grown worse and what this calls america to do. these are the right questions and i have come here today to offer a perspective on these recent tragic events and share with you and all americans my vision for a freer, more prosperous and more peatful world. megyn: campaign carl cameron is on the road in virginia in the romney campaign bus? is that where you are, carl? report report head fort shenandoah international

airport. mr. romney's speech today started in its formulation about three weeks ago after the u.s. consulate in benghazi was attacked when republicans across the country began to think the president's foreign policy was seriously in jeopardy by his inis tints wasn't a planned attack but prompted by a movie. this was an across the board assault on president obama's foreign policy. saying the strategy of hope is not a strategy and americans can no longer afford to put american security at risk under mr. obama. >> with iran closer than stroar nuclear weapons capability. with the conflict in stir yeah threatening to destabilize the region and with violent extremists on the march and with the ambassador and three others dead likely at the end of

islamic extremists. it the upo -- the conflict in te region is higher than it was when president obama took office. >> reporter: obama's campaign put out a video mocking romney. they argue romney has shown with his rhetoric without absence of a record that he's not prepared to be commander-in-chief and too quick on the trigger shooting before he takes tame and gets -- before he takes aim and gets all the focts. megyn: is this like the peter and bus, you get a movie? >> reporter: no, but occasionally we get a box lunch. megyn: the president's reelection team just wrapped up a conference call with reporters

reacting to governor romney's speech. one staffer using erratic, irresponsible to describe the governor's remarks. >> reporter: the obama campaign spokesman saying on that conference call to mitt romney, bring it on. they think they have a strong record to talk about. think about the evolution here back in 2008 was barack obama who was facing questions about whether he had the fitness to be the commander in cleave. not just from republicans but from joe biden who said barack obama would be tested. they believe he has been tested and has passed that test. but the obama campaign spokeswoman said mitt romney is not up to th up to the test. this is the same guy who went overseas on his trip.

the only person who has offended europe more is chevy chase. take a listen to how the president pitched his own foreign policy record at a campaign fundraiser in california last night. >> four years ago i told you i would end the war in iraq and we did. i said would i end the war in afghanistan, we are. [cheers and applause] >> i said we would focus on the people who actually attacked us on 9/11 and today usama bin laden is no more. [cheers and applause] >> reporter: the challenge for the president of course is after that terror attack in benghazi, libya he faced new questions about whether his foreign policy last has actually met that test. we have seen poll numbers about the president's handling of foreign policy it many come down in the wake of that terror

attack. so there is a alcohol evening there hanging over the president. but they bleach overall that his record has beenmegyn: what is tt doing in california, a state many americans don't think it has any chance of going anything other than blue on november 6. >> reporter: fundraising with celebrities like katy perry. not john legend at concert and he's about to dedicate a cesar chavez monument in california it's an official event but it seems a way for the president to appeal to hispanic voters. megyn: see you, ed. joining me now ambassador john bolton, a former ambassador to the united nations and a fox news contributor. now we sight' it's as though mitt romney has been reading charles krauthammer who has been calling for him to make a major

foreign policy speech. he's pretty aggressive in going after the president. what did you take away from if the remarks this morning? >> it should have been aggressive and it was properly so. the president's foreign policy and his world view is crashing around him with oh pensionly catastrophic -- with potentially catastrophic consequences for the american people. the president's attention span is bumper sticker thin when it comes to foreign policy. caring more about the politician than the substance of foreign policy is going to come back to haunt us. i think it already has tragically in benghazi. megyn: during the * reagan we had wer -- during president rean we had peace the through steant.

>> general marshall said the on way human beings can win a war is to prevent it. those words were true in his time and they are true in our time. megyn: he seemed to be getting at an argument that president obama while he believes he has kept us safer, has not in governor romney's view because he's not succeeding on preventing us on going count path to iran. what we saw in libya september 11 and so on. >> i think the president believes america's strength is provocative and our presence cause.others to act in a hostile fashion towards us. i think that's exactly wrong it, american weakness that is provocative. what governor romney was referring to by quoting general marshall goes back to the row man. if you want peace, prepare for war. the best war is the war that's

not fought and it's most likely not to be fought if america is strong. that is not the policy we have followed the last four years. megyn: the obama team is not going to roll over on the foreign policy argument. and you heard in the two reports that preceded you already starting going after governor romney and talked about his gaffe-prone trip in their views to europe. i want to show you the advertisement that they are rolling out against him. >> when our u.s. diplomats were attacked in libya, the "new york times" said romney's response showed a lack of presidential character. megyn: go ahead. >> all they do is talk about optics. of course, the "new york times" criticized romney. what a shock. the fact is when these issues are in front of the american people less than two months

before an election it is the responsibility of the presidential candidate to address them. it's not something that can wait until after the election. we had a debacle at the consulate in benghazi and there are official americans, private americans in libya and around the middle east who are still at risk today. we need to find the answers to what happened there and we need to take steps to make sure it doesn't happen again. if governor romney had not raised this issue he would not have been acting responsibly. the notion that the obama administration is attacking him for that, i think is just political distraction at its worst. megyn: you talked about the situation in syria and how we have been note any absent from that conflict. talked about how when there was a push for revolution in iran back in 2009, the president did not answer the call. does not resonate with the american people?

it's the thought is should we have gotten involved in iran, should we have gotten involved in syria on the heels of being involved in iraq and stan were does that rest late with americans -- does that resonate with americans? >> the power america projects around the world has a direct impact on our life at home. the image and presentation that obama makes is of a weak and inattentive president. this is the argument that it's american strength that's provocative. what happens is whether it's the assad regime in syria or the ayatollahs in tehran. they look at a weak and inattentive president and recalibrate their policies to take advantage that weakness. those are what the concerns should be. megyn: president obama's reelection team ramming up their attacks on mitt romney. calling him dishonest,

untruthful and coming out and saying he's a liar. sarah jones gave up her nfl cheerleading job to become a teacher. now she is a criminal defendant and about to make a plea after having sex with a teenaged student. now that federal government launched a program to fine hospitals if some patients return within 30 days of being released, we are going to speak to a doctor about how those fines might affect patient care. and everyone bottom line. >> we have to pass the bill so you can find out what is in it away from the fog of the controversy. [ mujahid ] there was a little bit of trepidation,

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megyn: new concerns now that

hospitals may be hit with big fines under president obama's healthcare law. that law says medicare can fine hospitals that have too many patients readmitted with complications within 30 days of their discharge. the average fee? $125,000 per facility. there are worries how those fines could affect the hospital bottom lines and their treatment of patients. i read this and say they are going to final hospitals because they want to hold them accountable for patient care. too many patients being readmitted within 30 days of discharge due to complications and they want to improve quality. i say great. would i like to improve quality and i don't want patients having

complications either. >> 2,200 hospitals is 2/3 of all the hospitals in the u.s. that takes medicare. we are talking about top hospitals be massachusetts general, university of chicago, vanderbilt hospital, hospitals that are very, very great. megyn: don't discharge somebody who is going come back in 30 days with a major complication. >> the hospitals i just named are called ter tirks ary patients. they are treating stroke and heart attack -- megyn: shouldn't we be in favor of obama-care holding these hospitals liable? >> no, something obama-care doesn't understand is what real medicine is about. if you have heart failure your chances of getting sick again

after we send you out is very, very high. where is the government understanding of the doctors in the communities who will take care of people when they get out. rural hospitals. what about poor people. the hospital discharges a patient and the doctor doesn't pick up the ball in the community. the patient comes back to the hospital and they get the penalty? the cleveland clinic doesn't make its money from medicare. it makes its money from charity and private patients. now maybe cleveland clinic will have to pay a penalty i. megyn: can there be a true clean bill of health? >> not with these kinds of diagnoses. i could say the government's heart is in the right place in this case. but medicine can't be practiced

this way. also doctors will run from patients. we are being pressured to send patients out early. we are shortening and shortening hospital stays and we are getting good eight. megyn: this is related to medicare. so it's medicare patients at issue. it's the older folks who may be giving the doctors a bit of a scare when a doctor treats an older person he needs to worry about this. >> especially with baby boomers coming in. the penalty isn't just for those diagnoses. if my my hospital gets penalized, they pay the 1% thanks across the board for all their medicare reimbursements going forward and that will go up to 2% and 3% by 2014. do they pass the fine along to

us? do they charge us more for other services? how do they get that money back? >> i think they will have to figure that out. because hospitals want to preserve their bottom line. so they will charge more forther services and they will try to charge private carriers more. megyn: is it possible if somebody was discharged and brought back to the hospital with a heart attack, could the hospital say we are not admitting you because you are going to cost us a fine? >> they will be worried about seeing that patient? they are not allowed to do that. they are going to try hard to avoid this. it will lead to total chaos in the emergency rooms. sometimes hospitals are sending patients out too soon. sometimes -- sometimes they shouldn't be readmitted. but sometimes there is good reason why they are being

readmitted. i don't think this is the right place to draw the line in the sand. if you want to cut down medicare costs, stop the overuse. when patients are sick -- megyn: isn't this going to keep patients in the hospital longer because the hospital is concerned about discharging somebody too early? >> what if they consult us here in that's something they should have thought of. the overall costs will be higher because of this. megyn: the lawyers are always worried about if they are going to get sued and how to prevent getting sued. if i were advicing a doctor i would say don't discharge until you are certain the person is healthy. >> i agree with that. i worry about helping the patient. why doesn't the hospital consult with actual practicing doctors like us. megyn: the president launching a

full court press to label mitt romney a liar. gas in california has crossed the $5 a gallon mark. still climbing, too. the problems at the pull and the political fallout. >> it's pretty crazy. >> i think it sucks. terrible. they went up pretty high. remember when you said men are superior drivers?

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megyn: u.s. health official just reported an additional 14 cases and one more fatality in a men injo -- in ameningitis outbreako pain treatment. >> reporter: the latest fatality flortd tennessee. we just got off the phone with

the cdc confirming 13,000 people may have been exposed to this potentially tainted medication. even thought it was recalled last month because this particular form of meningitis has an incubation period of four weeks we could see new cases well into late october. look at this map. the numbers continue to rise. 105 cases in nine states and a total of eight deaths have been flortd four those states, michigan, tennessee, maryland and virginia. it's caused by a fungus officials traced to the compounding center in massachusetts. the patients all received epidural injections of a steroid pain killer shipped from that pharmacy from late may to september. health authorities received the

shipment in question. patients who received the back injections any time since may 21 should contact their doctor if they develop fever, worsening headaches or numbness. there are antifungal therapies for this rare form of meningitis. they say it's important to begin that therapy early to get the best results. megyn: a former nfl cheerleader trades her pom-poms for a teaching job. but after getting caught in steamy extracurricular activities with a student has her in court. she said she'll be exonerated but she pled guilty. as the obama reelection campaign ramcampaignrams up campaign

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these kinds of plans could save you up to thousands in out-of-pocket costs... you'll be able choose any doctor who accepts medicare patients. and you never need referrals. so don't wait. with all the good years ahead, look for the experience and commitment to go the distance with you. call now to request your free decision guide. this easy-to-understand guide will answer some of your questions, and help you find the aarp medicare supplement plan that's right for you. megyn: back to you to our top story. the obama campaign ramping up a new line of attack against governor romney. the idea may have come in a meeting between the president and his top advisors after last

week's debate. take a listen to the membersing a as the democrats take a look at the poll numbers and ramp up their claim mr. romney is a liar. >> are you saying governor romney lied or was dishonest? >> yes, absolutely. >> people point out what a liar mitt romney was last night. if he was talking, if he was speak he was lying. >> i think that we expected an aggressive debater to show up last night on the debate stage with barack obama. we didn't expect an aggressively dishonest debater to show up and that's what we got in mitt romney. >> many people are situation they saw is a governor romney they had known all along and what is the problem in the past is they haven't seen that person and he final emerged during the debate. >> you mean he lied through his teeth in the republican primaries when he said he was going to cut taxes for the

american people. he's the etch-a-sketch guy. we always have to wonder which mitt is going to show up. if you lay out lie after lie after lie about your own plan as well as what the president has been talking about of course you can look good. megyn: doug schoen is a former adviser for president clinton and pat caddell for president carter. >> this comes from the top. they regroup the obama campaign after the debate, a disastrous debate by all polls and all accounts and they decide they had to go back to a narrative which has worked, the most virulent attacks on governor romney, attack him as a felon, criminal, murderer, it worked. they were ahead while he were doing it. they have 29 days left. the bottom line, it worked then,

call him a liar and it will get the president-elected. megyn: he has been attacked as a possible felon by the obama campaign and priorities u.s.a. as a murderer responsible for the death of a man's wife. and it was a lie. is this an effective campaign strategy? tight worked in the past because romney hasn't been on the stage. the problem is 70 million americans saw a debate. they could see for 90 minutes and make a judgment about governor romney and the president and they made a judgment. let me tell you the other problem the president's campaign has. this is coming from the top, which is this disconnect between the president being one thing and the campaign being another. well, the problem is in that debate the president backed up the claims of his campaign. i'm surprised the romney people haven't put a torpedo to his

advertising. remember the thing that disappointed voters. people voted for obama in '08 because he promised to bring change, a different politician. what has he become? a man desperate to be reelected. and willing to say anything. this is a man who once said we should bring the country together. megyn: listen to a different sounding barack obama after he had been called a liar by joe wilson on the house floor. >> we have to get to the point where we can have a conversation about big important issues that matter to the american people without vitriol and name calling, without assumption of the worst in other people's motives. >> what happened? >> the campaign made a determination with less than a month to go, ramming up the rhetoric.

calling the governor the worst sort of things would be politically more effective in the short term than saying we had differences and disagreements on the issues. the president tried that in the debate, it didn't work. now they are going back to what formula? the one that divide the country. megyn: it's one thing if he came out before the debate and said governor romney is not giving it to you straight. i'll tell you the truth about what his tax plan is going to do. is it any accident this line started in ernest across the board the day after the debate? which by the way, rasmussen is showing romney up 2 points nationally. >> what's happening is the polls tighten and the swing states start coming in. we have gone from he wasn't being truthful all the way up to being a liar. if the worst the numbers get the higher the pitch of rhetoric gets.

but the president's walk -- building himself a potential trap because of the clip you showed, if i were advising governor romney for this debate i would trap the president to saying to my face what he and his campaign or saying or not. in this town hall debate, these are real people, they don't like this stuff. the president has a problem. if he goes too harsh on the attack they are not going to like it. megyn: i asked that of stirewalt. remember frank luntz that shows the dials. when the ad goes negative the dials go down. >> an insider's point. pat has seen the same thing. the dials can go negative but the vote can go down. i believe the vote goes down in their polling and testing and they the obama campaign believe it's a risk worth taking for one of the reasons pat suggested. the romney campaign has not been adept at playing political

jujitsu coming back at the president. megyn: is this a potential turnoff because -- maybe the american people would have responded to this before 70% of them said barack obama lost the debate. does it look like somebody who is trying to blame what was perceived as a lack user debate performance on on the other than the debate performance? >> his success hangs on his job rating. getting into these weeds for a candidate of hope and change and i'll be different is i believe a mistake because one of two things is going to happen. he's got go so negative it will turn people off because it's live in front of people and him doing it. and secondly. what dogo doug says the romney campaign hasn't done, you said tonight your ads, tight my face. megyn: the american people are

very forgiving and we all had rough nights. if he had come out and said as he said after the 2010 mid-terms. i took a thumping. >> you have one job, to win. a president has got a larger job. but this president has one job and that this his terms to win at all costs. they have seen this strategy of demonization works. we are going back to something that has produced results and that's why they are doing it. megyn: why do you say that coming from the top? you see these top political advisers. he's a liar, you didn't have it last night. he lied. that's the only reason why you didn't come back. why do you believe barack obama himself said yes. >> because the campaigns are run from the top down. he met with his advisers the day after the debate. this thing of a president saying -- playing, you know like

this is henry ii in murder in the cathedral. i have nothing to do with it. he's now leading this, and i think you made the right point. the president should have said, i had a bad debate. here is the difference between us ... he is running the risk -- this is the candidate of hope and change and when he takes away why people like him, he runs a great risk. megyn: he just suggested in the "60 minutes" interview he may have let people down on the hope and change, changing the rhetoric in washington. but promised he would get back to that in his second term. how big a risk is this to already in the last 30 days go back to the incendiary stuff? >> he's going to it because in the short term they believe it will work better than apologizing. the other side is the romney campaign had one good night and the obama campaign is trying to use the $180 million they raised

in september to go back to demonizing romney and go back teen image that was such that he couldn't be elected. megyn: which was a successful strategy for a while. >> romney wasn't on the stage. but now people have seen him. and he has another opportunity. that is the problem with this. the strategy has real dangers for the president. and if romney is smart he will figure how the how to box him in. megyn: he's got a week and a half to figure it up on. we have the vice presidential debate this thursday. the next presidential debate is next week. the vice presidential debate is in kentucky this evening. bret and i will be there live, we hope you join us. 8:00 p.m. eastern time. if you don't this liar charge is going to couple. think again. we hope you join us. thanks so much. coming up. the cheerleader turned teach more made an appeal on national

television or vindication after she was accused of having a sexual relationship with an underaged student. now it turns out she pleaded guilty. what happened to i'll be you vindicated and i didn't do it? we'll talk about it next in "kelly's court." gas prices in california topping $5 a gallon. in 2008 candidate obama was complaining about gas costing $3.60 a gallon. >> it's pretty crazy. >> it sucks. up high from last week. >> it's ridiculous. [ male announcer ] alka-seltzer plus presents the cold truth.

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megyn: "kelly's court" is back in session. case of a teacher who made a national appeal for vindication only to plead guilty. sarah jones gave up or pom-poms

for a job in the school room. she taught english in a high school in kentucky. the plea aloud her to avoid jail time. she is required to report to a probation officer. undergo drug tests and never to apply for a teaching job again. her admission comes a few days before her trial was set to start. >> people don't note real me. i ask the general public to maybe hold their judgment until the truth does come out. this has gone the out of control and it was started by high school girls. at the end of the day everyone will know the truth. megyn: joining me now lis weihl and mark eiglarsh. >> so much for the vindication thing. instead she decided to go with,

okay, i did it. >> she went along with that one. i'm not going to defend her on that ground. she lied to police and lied to all of us, i wish she could do time because of that. but i think this is a positive thing that she pled guilty because the alleged victim and the family of the alleged victim was onboard with her. a prosecutor put that teenager on the stand. megyn: the victim and his family were on her side. >> that happens sometimes. sometimes the victim and the family are on the defendant's side. as the prosecutor you don't dumb the case because of that.

what really -- come on, five years -- no jail time. by the way, her mother pleaded to a misdemeanor. the mother isn't going to get jail time. the mother tried to get the kid, 17 at the time. time. this woman was 27 years old. if it had been reversed, a man doing this to a female student -- megyn: the mother of sarah jones, the defendant. listen to the mother in the case. >> i know why i had to go through this. mentally sarah couldn't have don't by herself and she needed my support. megyn: she means she couldn't have tampered with the evidence? >> she called up the victim and said you probably want to get rid of your phone because of all the text messages. that's tampering with evidence. megyn: that would help us a lot

if you could destroy the evidence. megyn: here is what the prosecution was up against. his mother being on the side of the cheerleading teacher. jury members are at risk in these cases saying look at her. there is a 10-year age difference. she is 27, the kid is 17. she is beautiful. what's wrong with it? >> it's illegal. >>it is illegal. the realities are the only thing that i know for sure having tried over 130 jury trials is you never note outcome. at least you would concede the same. a jury could ignore the law it's going to be something like this. >> we are fine with that double standard never mind a pretty woman can get away with it. >> you are mission the point. bravo to the prosecutors to

guarantee a conviction. >> with no jail time after she lied about it. megyn: what happened to her statement earlier this year that she has only had sex with one man, her ex-husband nathan. now she stands up and court and had mitts she had sex -- she admits she had sex with this kid. is it too harsh to take away her ability to teach forever? >> no. if it were a man in a similar situation, you wouldn't think twice. of course, you would never allow him to teach again. megyn: mark, she can never teach again. >> i have no problem with that. i find it abhorrent that she targeted a teenager but probably even worse is that she lied to everybody about it. so every future employer, even if she is away from kids, they will know she is a gal that can look everybody in the eye and

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>> my oh own rents good people. they mean well. but they have been in washington an awful long time. and even with all the experience they talk about, nothing has happened. this country didn't raise fuel efficiency standards for over 30 years. so what have we got for all that experience? gas approaching $4 a gallon. megyn: that was then senator barack obama take on rising gas

prices at a campaign stop vowing to raise prices on gas and oil companies calling for a new direction in america's oil prices as prices in california soared to an all-time lie over the weekend. what happened? >> reporter: the president is here in california driving by some of these gas station, he has seen prices like this behind me. the 76 station, $4.99 for regular gasoline. regular unled is $5.39. there is a number of reasons for this. one, high demand, two, california has more strict standard for gasoline. you can't import it from outside the state. the refineries that make it gas, several of them have gone down because of a major fire in august. prices are high and consumers are not happy. >> i have never seen gas prices

anywhere near this. >> it's shock. i have a lot of driving to done i have to fill up my car. >> i just spent $70 and this will only last me a week. >> it's ridiculous. >> reporter: governor brown changed the standard to the winter standard that could bring the prices down some. but even if they come down some they are significantly higher than this point last year. megyn: after the break something special. [ male announcer ] how do you make america's favorite recipes? just begin with america's favorite soups. bring out chicken broccoli alfredo. or best-ever meatloaf. go to campbellskitchen.com for recipes, plus a valuable coupon. campbell's. it's amazing what soup can do.

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